Offshore drillers likeAtwood Oceanics (ATW), Diamond Offshore Drilling (DO), Ensco (ESV), Noble (NE), Rowan Companies (RDC), Ocean Rig UDW (ORIG), and Transocean (RIG) have been on fire this week–and Evercore ISI’s James West and team credit a “2 sigma short interest unwind.” They explain:
As our new Energy trader Kevin Kenny noted this morning, Dont fight City Hall and we agree, especially in a beta chase. The offshore drillers have rallied 15% this week, second only to the land drillers +17% run. However, we believe this is due to short covering, as a portfolio of even lower-risk offshore drillers (Atwood Oceanics, Diamond Offshore Drilling, Ensco, Noble, Rowan Companies, and Transocean) has been shorted 4.4x their historical average. A total of 200 million shares were short as of May 31st versus an average of 50 million shares from 2005-2013, suggesting the group could be in the midst of a 2 sigma short interest unwind if oil continues to strengthen.
Top Communications Equipment Stocks To Buy Right Now: Palo Alto Networks, Inc.(PANW)
Palo Alto Networks, Inc. provides enterprise security platform to enterprises, service providers, and government entities worldwide. Its platform includes Next-Generation Firewall that delivers application, user, and content visibility and control, as well as protection against network-based cyber threats; Advanced Endpoint Protection that prevents cyber attacks that exploit software vulnerabilities on various fixed and virtual endpoints and servers; and Threat Intelligence Cloud that offers central intelligence capabilities, security for software as a service applications, and automated delivery of preventative measures against cyber attacks. The company provides firewall appliances; Panorama, a centralized security management solution for the control of appliances deployed on an end-customers network as a virtual or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system c apacity that ships with the appliance. It also offers subscription services, such as threat detection and prevention, URL filtering, laptop and mobile devices protection, malware and threats protection, and windows-based fixed and virtual endpoints protection services; support and maintenance services; and professional services, including application traffic management, solution design and planning, configuration, and firewall migration services, as well as provides education services. Palo Alto Networks, Inc. primarily sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries comprising education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was founded in 2005 and is headquartered in Santa Clara, California.
- [By Lisa Levin]
Palo Alto Networks Inc (NYSE: PANW) was down, falling around 12 percent to $130.81 as the company issued disappointing forecast for the current quarter. The company also reported in-line earnings for its third quarter, while sales exceeded analysts’ estimates.
Top Communications Equipment Stocks To Buy Right Now: Microsoft Corporation(MSFT)
Microsoft Corporation develops, licenses, and supports a range of software products and services for various computing devices worldwide. The company?s Windows & Windows Live Division segment offers PC operating system that primarily includes Windows 7 and Windows Vista operating systems; Windows live suite of applications and Web services; and Microsoft PC hardware products. Its Microsoft?s Server and Tools segment provides Windows Server operating systems, Windows Azure, Microsoft SQL Server, SQL Azure, Windows Intune, Windows Embedded, Visual Studio, Silverlight, system center products, Microsoft consulting services, and product support services. This segment also offers enterprise consulting services; and training and certification to developers and information technology professionals, as well as builds standalone and software development lifecycle tools for software architects, developers, testers, and project managers. The company?s Online Services Division segment provides online information and content through Bing, MSN portals, and adCenter, as well as Atlas online tools for advertisers. Its Microsoft Business Division segment offers Microsoft office; Microsoft Exchange; Microsoft SharePoint; Microsoft Lync; Microsoft Dynamics ERP and CRM; and Microsoft Office Web Apps, as well as office 365, an online service, offering Microsoft Office, Exchange, SharePoint, and Lync. The company?s Entertainment and Devices Division segment provides Xbox 360 entertainment platform, which includes the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 video games, Xbox LIVE, and Xbox 360 accessories; Mediaroom, an Internet protocol television software; and Windows Phone that provide Microsoft Office and Xbox LIVE functionality. It markets and distributes its products and services through original equipment manufacturers, distributors, and resellers, as well as through online. Microsoft was founded in 1975 and is headquartered i n Redmond, Washington.
- [By Jon C. Ogg]
This week we have seen dividend hikes from Dow Jones Industrial Average (DJIA)components Microsoft Corp. (NASDAQ: MSFT) and McDonald’s Corp. (NYSE: MCD). 24/7 Wall St. expects that there will be five, maybe six, more big dividend hike announcements from major companies before the end of 2013.
- [By Jared Cummans]
Keeping pace with its competition, tech giant Microsoft (MSFT) will detail its newest product on September 23rd.
The meeting is largely expected to unveil the newest Surface tablet, which is expected to feature a built-in battery as well as new processors. Unconfirmed rumors also suggest that the firm will be releasing multiple tablets, with a smaller version of its Surface tablet possibly making a debut.
Microsoft’s newest release will go head-t0-head with Apple (AAPL), which will be debuting the latest iPhone model at a meeting tomorrow. As Microsoft continues to battle to take away Apple’s market share, the unveiling and reception of its latest surface will be a key factor moving forward.
Microsoft shares were up 51 cents, or 1.61%, at Monday’s close. The stock is up more than 18% this year.
- [By Douglas A. McIntyre]
To further show YouTube’s dominance, minutes per view on the site were 521.6 in August. AOL Inc.’s (NYSE: AOL) were 56.8, Microsoft Corp. (NASDAQ: MSFT) sites registered 33 minutes, and Yahoo! Inc. (NASDAQ: YHOO) sites 79.2. Facebook Inc. (NASDAQ: FB) posted a pitiful 21.6.
- [By Christopher Freeburn]
Here are four things to know about Grand Theft Auto V:
It is available for both Sony‘s (SNE) Playstation 3 and Microsoft‘s (MSFT) Xbox 360 consoles. It is set in a fictionalized urban landscape based on Los Angeles. It offers three main characters, unlike prior editions, which focused on one. Rockstar Games will launch an online version — Grand Theft Auto Online — next month.
Nintendo Still Wont Make a Cash Grab for Mobile Games
Yesterday, Amazon (AMZN) said that it had sold out its pre-orders of Grand Theft Auto V for Xbox consoles, though some copies for the Playstation were still available.
Hot Wireless Telecom Companies To Buy Right Now: MercadoLibre Inc.(MELI)
MercadoLibre, Inc., together with its subsidiaries, hosts online commerce and payments platforms in Latin America. Its services are designed to provide its users with mechanisms to buy, sell, pay for, and collect on e-commerce transactions. The company principally offers MercadoLibre marketplace, an automated online commerce service, which permits businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. Its MercadoLibre marketplace enables registered users to list and purchase motor vehicles, vessels, aircraft, real estate, and other services through online classified listings; and Internet users to browse through various products and services that are listed on its Website and to register with MercadoLibre to list, bid for, and purchase items and services. The company also provides MercadoPago, an integrated online payments solution to facilitate transactions on and off the MercadoLibre marketplace by providing a mechanism that allows its users to send and receive payments online. In addition, it offers MercadoClics advertising program that allows businesses to promote their products and services on the Internet. This program enables users and advertisers to place, display, and/or text advertisements on its Web pages to promote their brands and offerings. Further, the company provides MercadoShops on-line stores solution, a software-as-a-service, which allows users to set-up, manage, and promote their own on-line Webstores. As of December 31, 2010, the company operated online commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Uruguay, and Venezuela; online payments solutions directed towards Argentina, Brazil, Mexico, Venezuela, Chile, and Colombia; and a real estate classified platform that covers various areas in Florida. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina.
- [By Roberto Pedone]
Mercadolibre (MELI) operates an online trading site for the Latin American markets. This stock closed up 7.1% at $128.50 in Monday’s trading session.
Monday’s Volume: 814,000
Three-Month Average Volume: 479,008
Volume % Change: 69%
From a technical perspective, MELI ripped higher here right above its 50-day moving average of $117.07 with above-average volume. This move pushed shares of MELI into breakout territory, since the stock took out some near-term overhead resistance at $125.30. Shares of MELI are now quickly moving within range of triggering another big breakout trade. That trade will hit if MELI manages to take out some more near-term overhead resistance at $130.74 with high volume.
Traders should now look for long-biased trades in MELI as long as it’s trending above $125 or $124 and then once it sustains a move or close above $130.74 with volume that’s near or above 479,008 shares. If that breakout triggers soon, then MELI will set up to re-test or possibly take out its 52-week high at $136.52.
- [By Scott Rubin]
Stock gainers included Mercadolibre Inc (NASDAQ: MELI), up almost 14 percent, and Nu Skin Enterprises, Inc. (NYSE: NUS), which added 12 percent. The positive gains in both stocks were due to strong earnings reports. Shares of Liberty Interactive Group (NASDAQ: QVCA) plunged almost 22 percent on Friday due to disappointing sales growth in its fiscal second quarter. Pharmaceutical giant Bristol-Myers Squibb Co (NYSE: BMY) lost 16 percent after a disappointing study involving its Opdivo drug.
Top Communications Equipment Stocks To Buy Right Now: Facebook, Inc.(FB)
Facebook, Inc. operates as a mobile application and Website that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers worldwide. Its solutions also include Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application for mobile and Web on various platforms and devices, which enable people to reach others instantly, as well as enable businesses to engage with customers; and WhatsApp Messenger, a mobile messaging application. The company also develops Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others. As of December 31, 2015, it had 1.04 billion daily active users ( DAUs) and 934 million DAUs who accessed Facebook from a mobile device. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
- [By Afraid to Trade]
Facebook (FB) continues its strong bullish uptrend, but we’re planning a short-term trading opportunity on the current retracement.
Let’s highlight the trend, trading levels, and possible trades setting up right now:
- [By Luisa Navarro]
Mark Zuckerberg also had a good year, thanks to the rebound in Facebook’s (FB) share price. After dropping to number 36 last year, he returned to the top 20 with a personal fortune of $19 billion. His gain of $9.6 billion made him this year’s second-biggest gainer.
- [By Ari Levy]
Facebook Inc. (FB), which held one of the biggest IPOs in U.S. history last year, lost more than half its value in the months following the deal. The prospectus was pored over for three months before the offering by analysts, investors and reporters.